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Business English vocabulary · Company Structure

Demerger

Meaning in business english, with examples

nounAdvanced term

In business english, demerger means: The separation of a business into distinct companies or ownership structures.

In Turkish: şirket bölünmesi, ayrışma

How it is used

Used in corporate restructuring. It names the separation process; the resulting company may be described as a spin-off, depending on the arrangement.

Example sentences

  1. After the demerger, the retail and manufacturing businesses published separate annual reports.

    Separate reporting reflects the businesses' new organizational separation.

  2. Staff asked whether the demerger would change which company issued their payslips.

    The question concerns the employing entity after separation, not just a new departmental name.

Common collocations

  • announce a demerger
  • complete a demerger
  • subsidiaryA company that is owned or controlled by another company, called the parent company, but is a separate legal entity.
  • parent companyA company that owns or controls one or more other companies, which are called its subsidiaries.

More terms: Company Structure

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